Breaking into African Markets: How to Find a Distributor in Africa for Success
We are drawn to this quote by the late Ratan Tata, “If you want to walk fast, walk alone. But if you want to walk far, walk together.”
This profound statement cements how we view the process of searching for and finding the ideal distributor for any business looking to enter the African Markets.
This is no easy task. Africa has diverse markets, rapid economic growth and unique distribution networks and infrastructure. Each market in Africa requires customised research of their culture, language, customer preferences and demands. It is about localising products and services to match the capacity of the distributor to reach and service the local market with a long-term vision. It is not about quick profits or rushed solutions and decisions.
Finding a distributor in Africa is a deliberate process with serious intentionality to gather critical data, with a follow-through of unpacking the information, and then utilise it to build trusted partnerships in every level of implementation to get your business products and services to market.
What is a Distributor?
Distributors purchase products and services from Master International Suppliers or Manufacturers and hold a certain amount of stock locally to be resold to their customers.
There are two types of distributor agreements:
- Exclusive: the distributor is the only party that is responsible for the resale of the products in a certain territory. The distributor will not be permitted to engage in the distribution of any other products and services.
- Non-Exclusive: the master supplier or manufacturer can hire multiple distributors in a specific territory who engage in the distribution of the same products and services.
Knowledge is power. Applying the knowledge for success is when preparation and opportunity merges.
Key Guidelines and Steps to Finding a Distribution Partner in Africa
1. Identify Key Countries:
Determine specific African countries that show demand for your product or services. The main players on the continent include South Africa, Ghana, Nigeria, Kenya, and Egypt. However, the research can direct one into other African markets that could be potential channels as well.
2. Gain an Understanding of Local Laws and Regulations:
Each country holds their own import and export platforms and rules to follow. Building relationships with the diverse local and national associations and government bodies is important.
3. Take advantage of current B2B platforms:
This can range from local trade hubs for insights and data, such us, https://westafricatradehub.com/ and LinkedIn to research potential distribution partners.
4. Gather Competitive Analysis:
Learn if local or international competitors have a footprint in the specific target counties, and get data on their market share, strengths, weaknesses, and sales and marketing campaigns. Any learning from competitors could prove to be valuable insights to success or failed approaches to these unique markets.
5. Plan Africa Country Visits:
It is vital to schedule substantial visits, or a few frequent trips to see the country, experience the land, people, infrastructure and see in-person the distribution channels. Attending local trade shows and events are great sources to connect with industries and distributors.
6. Leverage Industry Connections and Networking Relationships:
This is most likely one the most critical steps – building trusting relationships via referrals, existing networks and strategic partnerships. This key step requires time and inside intelligence to make the right introductions at the right time.
7. Conduct Due Diligence:
This is a dealbreaker step. After careful research and gathering of essential data and building relationships, the verification process is beyond necessary to get each distributor’s financial and business track records, and what their capacity and capabilities are. It is also important to do legal checks and licensing that would be required to adapt and distribute your products or services.
8. Create Distributor Profiles:
Set a list of requirements of an ideal distributor, including how their plan and implement their business operations, sales, marketing. Their management, staff complement, working approach, ethics and expertise are valuable determinants.
9. Meet and Interview the Distributor:
Do a thorough interview to test their knowledge of local marketing, pricing, and all business operations that show how they can become a distributor to sell and market your products and services successfully in the select African markets.
Partnering with the right Distributor is a key success factor in breaking into the African Market. This requires a commitment to start and finish the process by searching and qualifying potential distributors. It is about quality of time and investment and working strategically with existing companies and businesses who have the history, experience, relationships and knowledge of living and doing business in Africa.
Is your Business in Search of a Distributor in Africa?
We are a hands-on and on-the-ground team operating from our head office in Kenya, with regional representations in Nigeria, Ghana and South Africa.
We help you ask the apt questions and provide a framework to navigate this momentous task.
Throughout the process, your business and team have autonomy regarding decisions that align with your business vision and goals.
Our aim is to provide strategic partnership to assist any business that desires to plant roots and exploit the great potential within the African continent.